Let your business take advantage of an online credit application

Online credit applications have been talked about in the credit industry for some time now and they are becoming more common among businesses. A traditional business may be wary of adapting to new technologies such as online credit applications but there are many advantages as business becomes increasingly fast-paced.

Let’s take a step back to the principals of credit management and its role in business. We often misconstrue the role of the credit department, diminishing it to simply collecting money when it is due. Somewhat correct. The team is also there to support and work with the sales department as they move along their sales cycle. The credit team will determine:

If the prospective customers are who they say they are

If they have the capacity to pay

Whether there is previous bad payment history

If the directors have any adverse information against them

and so much more…

The credit team should be consulted along the way, but this component can often drag out the sales process which leads to longer sales cycles and, potentially, leaves the prospective customer looking elsewhere - no business would appreciate that!

So, let’s imagine this scenario:

Your company’s sales manager is about to finalise a large deal that includes an ongoing supply contract over a 24-month period. Before signing off on the contract, the sales manager ensures the potential client completes the company’s credit application.

After submitting the application (including all terms and conditions, guarantees and any special requirements) the sales manager waits for the response from the credit department. Instead, however, of needing to wait for the credit department to manually check all details, request and review a credit check then process this internally, the online form has already done all this! The credit team now receives confirmation that this business is in good financial health and the sales manager completes the sale.

So why use an online credit application?

Instantaneous data checking of the correct legal entity

Fewer hours spent manually processing for the credit team

Timely response rates for the credit and sales team

Electronic storage

An online credit application could give your credit department the edge it needs.